REQUIREMENT OF APPOINTING OF COMPANY SECRETARY AND SECRETARIAL AUDIT REPORT
Ministry of Corporate Affairs (MCA) vide notification dated January 03, 2020 notified Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020 and amended the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
The said rules are applicable from the Financial Year commencing on or after April 01,2020.
Section 203, Rule 8, 8A
Section 204, Rule 9
Following class of companies according to section 204 are required to annex with the Boards report Secretarial Audit Report:
(a) Every Public Company with Paid up Share Capital of >= Rs.50 Cr, or;
(b) Every Public Company having turnover of >= Rs.250 Cr
In addition to Clause (a) and (b) of 204 one more clause has been added which reads as following:
(c) Every company having outstanding loans or borrowings from banks or public financial institutions of >= Rs.100 Cr
Explanation to the sub rule: (inserted with the amendments)
For the purposes of this sub-rule, it is hereby clarified that the paid-up share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of latest audited financial statement shall be taken into account.”.
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Rutu M Doshi